To the outsider, operating a warehouse may appear simple. But efficient warehousing requires getting lots of details right. Warehouse managers will have a range of Key Performance Indicators (KPIs) to measure warehouse performance, with safety and costs rightly near the top. But one overlooked and undervalued KPI that remains in the shadows is inventory accuracy. High levels of inventory accuracy is a great indication that all your warehouse processes are working effectively and this will be reflected in increased productivity and reduced costs. Low inventory accuracy, on the other hand, is a sign there are issues lurking that need to be addressed before they turn into serious problems. This white paper will answer three critical questions:
What is inventory accuracy and how is it measured?
Why is it important and what are the business implications of low accuracy?
What are the causes of and solutions for low inventory accuracy?